Date Added: Mar 2010
This paper considers flow of containerized traffic in a cascade of channels with diverse risk characteristics. Each channel is characterized by a probability distribution function relating the probability of loss being less than a given value to the magnitude of the loss. The cumulative impact of cascading channels is then evaluated as a closed form solution in terms of the characteristics of the constituent channels with dissimilar risk characteristics. The results presented in this analysis can be used to shape the risk characteristics of individual channels through, for example, additional investment in order to maximize the impact of such investments.